How to Relocate Across States with a Physician Mortgage Loan

TLDR:
Relocating for a new medical job — whether for residency, fellowship, or an attending role — often means crossing state lines. Physician mortgage loans are built to simplify this transition by allowing doctors to qualify using a signed employment contract, even before they start working. This guide explains how to buy a home in a new state using a physician mortgage, what documents you’ll need, and how to avoid common relocation mistakes.

Why Relocation Is So Common in Medicine

Physicians move often. Whether it’s the jump from med school to residency, fellowship to attending, or switching health systems, relocation is part of the job. According to the AAMC, over 60% of doctors relocate after graduation or training.

This constant movement can complicate homebuying, especially across state lines. Traditional loans often require local income and residency, which many doctors don’t have until after they move.

Physician mortgage loans offer a way around this.

The Problem: Buying in a State Where You Don’t Yet Work

Conventional mortgages typically require:

• Local pay stubs or W-2s
  
• Proof of employment in the same state
  
• Physical residency in the state where the home is located

This disqualifies many relocating doctors — especially new grads or fellows.

Physician loans, however, accept signed employment contracts as proof of income, allowing you to buy before you begin work in the new location. For a deeper look, see Secure a Home Loan Before Your Residency Starts

Why Physician Loans Work for Relocation

Physician loans are designed with doctors’ career paths in mind. They offer:

• Contract-based qualification
  
• No PMI, even with 0% down
  
• Flexible student loan DTI treatment
  
• Higher loan limits than conventional loans

For a comprehensive overview, this Doctor Mortgage Lending Guide explains the basics.

Pre-Approval Before You Move: What You’ll Need

Getting pre-approved while still in your current state is not only possible — it’s encouraged.

You’ll typically need:

• A signed employment or residency contract
  
• Government-issued ID
  
• Credit report (700+ is ideal)
  
• Proof of funds (even if doing 0% down)
  
• A letter of completion (for residents/fellows finishing training)

You do not need to be licensed in the new state to begin the mortgage process.

Tip: Don’t Wait Until You Arrive

Many relocating physicians make the mistake of waiting to tour homes in person. But by then, time is tight — and listings move fast in summer markets.

Instead:

• Begin your search with a real estate agent in the new city
  
• Use virtual tours and e-signatures
  
• Lock in financing while still in your current job

Physician Relocation Scenarios: How Loans Apply

✅ Moving for Residency

You can buy with a signed residency offer — no paychecks needed.

✅ Starting a New Attending Role

New job with higher pay? Lenders use the contracted income, not your training salary.

✅ Job Change with Employment Gap

Even with a 30–60 day gap between jobs, a physician loan can help you close before your new start date.

Physician Loans Across States: What Changes?

Programs vary slightly by state. Some states offer:

• Higher loan limits
  
• More flexible underwriting
  
• Different eligible property types

For example:

• Best Physician Mortgage Loans in Arizona: 2025 Guide
• Best Physician Mortgage Loans in Georgia: 2025 Guide

Always confirm state-specific options with your lender.

Common Mistakes to Avoid When Relocating

• Waiting too long to apply — Start 60–90 days out
  
• Working with a non-specialist lender — Not all understand physician contracts
  
• Skipping an inspection — Especially risky in unfamiliar markets
  
• Buying without budgeting for relocation expenses — Include movers, utilities, licensing, etc.

What If You’re Unsure About the Area?

If you’re new to the state and not sure where to live:

• Ask your future colleagues about neighborhoods
  
• Look for proximity to your hospital, groceries, and green spaces
  
• Don’t hesitate to rent temporarily if it gives you more confidence

Still unsure whether buying or renting makes sense? See Should You Buy or Rent This Summer as a Resident Physician?

External Insight: Remote Homebuying Is Mainstream Now

According to the National Association of REALTORS® 2024 Generational Trends Report, nearly 25% of younger buyers purchased homes without touring them in person. For relocating physicians, this validates the trend toward virtual homebuying supported by:

• Video walk-throughs
  
• E-signature documentation
  
• Remote closings

Most physician lenders and agents now support fully remote buying experiences.

Final Thoughts: Relocation Doesn’t Have to Delay Homeownership

Relocating across states is stressful, but it doesn’t need to delay your homebuying plans. Physician mortgage loans are uniquely designed to help doctors:

• Qualify before they move
  
• Avoid PMI and high down payments
  
• Secure housing in time for new roles

Whether you’re buying your first home or upgrading to match your new job, the key is starting early and working with professionals who understand your path.

Ready to explore your home financing options across state lines?
Start with our Doctor Mortgage Calculator and connect with a physician loan expert to begin your move with confidence.